Bob and Joyce are married,file a joint return,and have one dependent child,Dane,age 9.Bob has earned income of $72,000.Joyce was a full-time student (for nine months)with no income.They paid a qualified day care center $4,000.What amount of child and dependent care credit can Bob and Joyce receive?
A)$450.
B)$600.
C)$800.
D)$1,200.

Question

Quizplus · Accepted Answer

The child and dependent care credit is a tax credit that helps offset the cost of child care expenses. The maximum amount of the credit is $1,200 for one qualifying child and $2,400 for two or more qualifying children. To be eligible for the credit, the taxpayer must meet certain requirements, including:* The taxpayer must have earned income.* The taxpayer must have paid for child care expenses in order to work or attend school full-time.* The child care expenses must be for a qualifying child.In this case, Bob and Joyce meet all of the requirements for the child and dependent care credit. Bob has earned income of $72,000, and they paid $4,000 for qualified day care expenses. Their qualifying child is Dane, who is age 9. Therefore, Bob and Joyce can receive a child and dependent care credit of $450.

Bob and Joyce Are Married,file a Joint Return,and Have One